Transcat Inc
NASDAQ:TRNS
Transcat Inc
Transcat, Inc. engages in provision of calibration and laboratory instrument services. The company is headquartered in Rochester, New York and currently employs 765 full-time employees. Transcat is focused on providing services and products to the life science industry, which includes pharmaceutical, biotechnology, medical device, and other FDA-regulated businesses. Transcat operates through two segments: Service and Distribution. Its Service segment offers calibration, repair, inspection, analytical qualifications, preventative maintenance, consulting, and other related services. Its distribution segment it sells and rent national and brand instruments to customers globally. Its other industries served includes industrial manufacturing; energy and utilities, including oil and gas; chemical manufacturing; FAA-regulated businesses, including aerospace and defense and other industries.
Transcat, Inc. engages in provision of calibration and laboratory instrument services. The company is headquartered in Rochester, New York and currently employs 765 full-time employees. Transcat is focused on providing services and products to the life science industry, which includes pharmaceutical, biotechnology, medical device, and other FDA-regulated businesses. Transcat operates through two segments: Service and Distribution. Its Service segment offers calibration, repair, inspection, analytical qualifications, preventative maintenance, consulting, and other related services. Its distribution segment it sells and rent national and brand instruments to customers globally. Its other industries served includes industrial manufacturing; energy and utilities, including oil and gas; chemical manufacturing; FAA-regulated businesses, including aerospace and defense and other industries.
Strong Revenue Growth: Transcat’s Q3 revenue grew 26% year-over-year to $83.9 million, with both service and distribution segments delivering double-digit growth.
Organic Service Growth: Organic service revenue returned to more typical levels, growing 7% in the quarter.
Gross Margin Expansion: Consolidated gross margin expanded by 60 basis points, while distribution segment gross margin grew by 330 basis points, helped by a shift toward higher-margin rentals.
Acquisition Impact: Recent acquisitions of Martin Calibration and ESCO Calibration contributed significantly to growth and have expanded Transcat’s technical and geographic reach.
Adjusted EBITDA & EPS: Adjusted EBITDA was $10.1 million (up 27%), with adjusted diluted EPS at $0.26 for the quarter.
Service Margin Headwind: Service margins declined due to onboarding costs for new customers, but management expects normalization over the coming quarters.
Guidance Reaffirmed: Management reaffirmed expectations for high single-digit organic service revenue growth in Q4.
Active Acquisition Pipeline: The company continues to pursue further M&A to fill geographic gaps and capitalize on new opportunities.
